Manitoba introduces construction sector payment legislation
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Hey there, time traveller!
This article was published 16/03/2022 (1572 days ago), so information in it may no longer be current.
The Progressive Conservative government introduced a bill Wednesday requiring contractors and subcontractors in the construction industry be paid in a timely manner.
While existing laws help secure claimants’ rights to payments and ensure payments are kept within the construction pyramid and flow appropriately, there is currently no remedy for a late payment, a government news release said.
Bill 28 (Prompt Payment for Construction Act) would provide a remedy for late payments, while not affecting existing lien and trust statutory remedies, the release said. The legislation would allow the provincial government to provide a remedy in a timely fashion, instead of assuming the task of amending the existing Builders Lien Act.
Delayed payments are not unique to the construction industry, but the sector is especially vulnerable to negative impacts of delayed payments due to its tiered payment structure, the province said.
At each tier of the construction contract chain, contractors and subcontractors must finance payrolls, materials and other expenses before they are paid. Delayed payments at multiple tiers can compound severe financial consequences for subcontractors.
The construction industry accounts for approximately eight per cent of Manitoba employment, the government said.